Would you describe you creditworthiness as excellemt? Good or perhaps only fair? The wonderful thing about Capital One® is that they have a variety of credit card options, specifically designed for different levels of credit.
So, who should apply for a Capital One Platinum MasterCard vs. one of their other cards? This review will help you understand if this card is a fit for your current credit quality.
Both of these Capital One MasterCards are in the Platinum tier. Here’s a quick overview of each:
Capital One® Platinum Credit Card
- Annual Fee: $0
- Interest Rate: 24.99% variable for purchases and balance transfers
- Credit Requirements: Average/Fair/Limited
- Honest Feedback: If your credit isn’t the best, but it’s not downright bad, then this is a good choice because you will be getting platinum-tier benefits with a very reasonable annual fee. The negative is that the APR is higher, but that’s because it’s geared towards “fair” credit instead of “excellent.” credit, so that’s to be expected
- Go here to learn more
Capital One® Platinum Prestige
- Annual Fee: $0
- Interest Rate: 10.9% – 20.9% variable for purchases and balance transfers after the intro period
- Credit Requirements: Excellent/Good
- Honest Feedback: If you have excellent or good credit and carry a balance, this is a straightforward choice. The APR range is definitely on the low end when you compare it to most reward cards (which usually come with higher rates). Last but not least, you get 0% intro APR on both purchases and balance transfers until August 2016.
So, that’s a high level assessment of each offer, but let’s get down to brass tacks about their advantages – and possible disadvantages – that you should consider.
- No Foreign Transaction Fee: Almost every credit card issuer in the US tags their unsuspecting customers with a nasty fee for foreign transactions (usually a 2-3% surcharge). What’s unique about Capital One is that their cards don’t charge this, which is reason enough to have brand loyalty to this company. In fact, they are the only issuer which doesn’t charge a foreign transaction fee on any of their cards. To put this in perspective, even the $450 American Express Platinum Card charges this fee, so the ability to get a no annual fee card without such a fee is exceedingly rare.
- Extended Warranty Program: For eligible purchases that come with an original manufacturer’s (or U.S. store brand) warranty, this benefit will mirror that coverage for the same amount of time, up to 1 extra year. So let’s say you used your Capital One Platinum card to make a qualifying purchase that had a 6 month warranty. Through this extended warranty program, you would have an additional 6 months of coverage. When your card arrives make sure you read the benefits guide that comes with it, so you understand the rules surrounding this program.
- Reasonable Annual Fee (When Applicable): If you go with the standard Platinum, you don’t have to worry about busting the bank just to pay for your card’s annual fee. $19 is reasonable when you compare it to some other cards out there for fair credit.
- MasterRental Insurance: This is MasterCard’s vehicle rental insurance program. Coverage for accidental damage and vehicle theft is provided on eligible rentals of 15 consecutive days or less which are fully paid for using your Platinum MasterCard. To use this benefit, you will have to decline the collision damage waiver from the rental company.
- Automatic Travel Accident Insurance: This applies during licensed common carrier travel (such as being a passenger on an airline) if you paid for the full cost using your Capital One Platinum credit card. MasterCard’s insurance provider offers up to $100,000 in coverage in the event of a travel accident which causes loss of life, limb, hearing, sight, or speech while riding as a passenger.
The Potential Disadvantages
- Platinum APR: The rate on the standard Platinum is on the high side. But given that it’s for fair credit, it’s understandable. Of course, if you never carry a balance, then you won’t have to worry anyway.
- No Rewards Program: Perhaps the most notable drawback is that these Capital One Platinum MasterCards do not offer a rewards program. While that may seem like a bad trait, it’s actually understandable when you consider (1) that these cards are designed for those with lower credit scores, and (1) the low rates on the Platinum Prestige that probably wouldn’t be possible if rewards were involved. Credit card rewards can actually be detrimental to someone who needs to focus on paying off their balance because they also induce people to spend more money than they ordinarily would. Simply put, these Capital One cards are not aimed at the reward seekers with excellent credit who never carry a balance – if that describes you, then check out the Venture card.
- Bad Credit Probably Won’t Qualify: If you have poor credit and are looking to rebuild, then you might need to start with a secured card instead.
Find out more
- Capital One Platinum (for average/fair/limited credit, $19 annual fee is waived for the first year)
- Capital One Platinum Prestige (for excellent/good credit, no annual fee, 0% intro APR on purchases and balance transfers until August 2016)
This review was written or last updated November 3, 2015